Mother says my loans interest will just eat up any extra money i put on my payment…?
Make your usual payment as planned. Then, send in a separate check to the same place in a second envelope and write on the check and in a note as well that you want it to go for “principle only.” Once you see the check clear your bank, call them and make sure they allocated all of your second check to principle only. They will just put it in towards interest in most cases even though you told them principle only. They will claim it was a mistake on their part, but it isn’t. The higher they can keep your principle owed, the more interest they can charge you and the more money they make. You must watch them like dogs. They will try to screw you every chance they get. It is their job. It is your job and responsibility to make sure this does not happen. Separate payment in separate envelope marked principle only. Call after check clears bank and keep an eye on them. Good luck.
You owe 3790. Paying 1300 will reduce that to 2490. Simple math. I have no clue what your mom is thinking with the “interest will eat it up” comment. Here’s the trick though – your monthly payment (or minimum payment depending on loan type) will be reduced once the principal balance goes down. It’ll be tempting to just pay that new minimum. Continue paying what your payment is now at very least. Increase it if you can and designate the extra as Principal Payment.
Agree with David, your mom is wrong. Anything over your $150/mo payment will be applied towards the principal. So your principal should be reduced by $1150. If you can spare the $700 in April when you get it, do the same thing again. $150 payment, then $550 to principal. Between your two payments you’ll lower your principal $1700 on top of your monthly payments.
